Options Participation

Agreements & Forms

Firms that are not self clearing should review the NASDAQ specs to understand how OCC Optional data is handled and discuss this with their clearing firm. These firms also need to complete a Letter of Guarantee (PDF). Self clearing firms need to complete this Letter of Guarantee.

Option Market Participants

Options Order-Entry Firms (OEFs) - Participants representing customer orders as agent on The NASDAQ Options Market and non-market maker participants conducting proprietary trading as principal. There are no restrictions on an OEF’s ability to enter orders on both sides of the market.

Options Market Makers - Participants registered with the exchange as options market makers and registered with The NASDAQ Options Market in an options series listed on The NASDAQ Options Market. To become an options market maker, an options participant is required to register by filing a written application. Such registration consists of at least one series and may include all series traded on the exchange. The NASDAQ Options Market does not place any limit on the number of entities that may become options market makers.

Market Maker Responsibilities

Market makers in The NASDAQ Options Market have the responsibility to:

Maintain a two-sided market

Participate in the Opening Auction

Execute no more than 25% of their contracts in a series in which they are not a market maker.